Green group WWF and environmental impact firm Finance Earth have teamed up to launch a fund that seeks to catalyse over $100 million in investments in sustainable fisheries by the end of the decade.
The Fisheries Improvement Fund (FIF) represents a new financing model focused on scaling global fisheries improvements towards nature positive outcomes and healthier marine ecosystems, the two said in a press release.
“Through this blue finance mechanism, sustainable financing will be ensured for projects that are critical to scaling fishery reform over the coming decade for people and nature, through an efficient, equitable, and cost-effective model,” said Johan Bergenas, senior vice president of oceans at WWF US.
“Our vision is that this fund, under the management of Finance Earth, revolutionises fisheries finance, driving game-changing environmental and social impact.”
Under the FIF, participating companies will commit to paying a volume-based fee that will allow the fund to pay back upfront costs to projects, as well as to create a long-term revenue stream for them.
Feeds companies Skretting and Cargill are among companies that will be involved with the FIF from the outset, and the two have committed to participating in a pilot project that WWF and Finance Earth said will showcase and prove the new model, though details of the pilot have yet to be released.
Mars, Costco, Sodexo, and Walmart Foundation are among others that are backing the launch of the new fund.
“We are always looking for more sustainable ways to source our raw materials to help protect vulnerable ecosystems and drive responsible practices,” said Paul Gardner, Mars’ chief procurement officer, pet nutrition.
“Through this innovative blue finance mechanism, Mars is supporting the development of new models that can provide a consistent source of funding for global fisheries improvements, with a clear aim to positively impact our oceans.”
The company has vowed to invest $1 mln in FIF projects over the next five years.
The FIF’s funding model aims to change the way long-term sustainability is funded by recognising it as a cost of business and embedding it into product costs, the announcement said.
“We see a clear and compelling business case for companies to invest in the long-term viability of their marine ingredients used for aquaculture products, especially as aquaculture production continues to grow exponentially,” said Cargill’s president of aqua nutrition, Helene Ziv-Douki.
“The industry needs to work to support sourcing from more sustainable fisheries through active engagement. Improvement in fisheries will reduce supply chain volatility and mitigate supply chain risk while enhancing business value across the sector.”
Finance Earth will be managing the new fund, and is now seeking proposals from fisheries worldwide interested in receiving FIF funding, including NGOs, local fishing groups, industry actors, offtake/trading companies, buyers/retailers, and local/national governments.
Over fishing and harmful fishing techniques are among the main threats to marine health, ecosystems, and biodiversity.
By Stian Reklev – stian@carbon-pulse.com
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